Based on a joint consideration of Media Agenda Setting Theory and Legitimacy Theory,which of the following statements is correct?
A) According to Legitimacy Theory management uses the annual report as a tool to legitimise the ongoing operations of the organisation, and according to Media Agenda Setting Theory the media are able to influence community perceptions about issues such as the environment.
B) Community concerns about the environmental performance of a specific firm in an industry will also impact on the disclosure strategies of firms across that industry.
C) We should find a relationship between the extent of disclosure of social and environmental issues within the annual report and the media attention given to those issues.
D) All of the given options are correct.

Question

Quizplus · Accepted Answer

All the statements provided are correct and align with the principles of both Media Agenda Setting Theory and Legitimacy Theory. Legitimacy Theory suggests that organizations use disclosures, such as annual reports, to legitimize their operations to their stakeholders. Media Agenda Setting Theory posits that the media can influence what issues the public perceives as important, including environmental concerns. Both theories together suggest that media attention on social and environmental issues can influence the extent of related disclosures in annual reports, and that community concerns, amplified by media, can affect disclosure strategies across an industry.

Based on a Joint Consideration of Media Agenda Setting Theory